Which One of the Following Requires Intraperiod Tax Allocation

question 2

Multiple Choice

Which one of the following requires intraperiod tax allocation?

• A)installment sales for tax purposes and accrued revenue recognition for accounting purposes
• B)the excess of accelerated depreciation for tax purposes over depreciation for accounting purposes
• C)interest income on municipal obligations
• D)prior period adjustments

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Definitions:

Variable Overhead Efficiency Variance

is the difference between the actual variable overhead incurred and the standard cost allocated, based on the efficiency of utilizing resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and what the variable overhead costs should have been for the actual good units produced.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.